a16z writes a massive check for Adam Neumann’s real estate comeback
The Future. VC firm Andreessen Horowitz (a16z) has ponied up a huge check for controversial WeWork founder Adam Neumann and his new community-driven apartment rental platform, Flow. There’s no doubt that the rental industry is broken in America, and Flow may actually provide an innovative fix to the problems plaguing it… but Neumann’s name may be too steeped in controversy for tenants ever to sign a lease.
Let the money Flow
TechCrunch reports that a16z is giving Adam Neumann a big second chance.
- The VC wrote Neumann a $350 million check — its largest single investment ever — for his rental real estate startup, Flow.
- That gives Flow a valuation of $1 billion even though it technically hasn’t started operation yet.
What exactly is Flow? The company hopes to bring “community-oriented features to the rental market (we’re definitely getting WeWork vibes here). Flow has already purchased 3,000 apartment units across Fort Lauderdale, Miami, Atlanta, and Nashville, which are set to hit the market sometime in 2023.
Considering the recent premier of WeCrashed on Apple TV+ this year, it’s incredible that a16z is so willing to jump in the saddle with Neumann.
- While the concept behind WeWork was ahead of the remote work lifestyle curve, Neumann infamously burned a lot of cash on parties and poor management.
- He was even paid $1.7 billion to walk away from the company after a failed IPO and billions lost in value.
But this isn’t a16z’s first endorsement of Neumann. The company invested $70 million in his blockchain-based carbon credit platform, Flowcarbon, back in May. It seems the charismatic entrepreneur has won the team over.